AEV registers net profit of P10.3b

Aboitiz Equity Ventures Inc., the holding company of the Aboitiz Group, reported a 2-percent decline in first-half net income to P10.3 billion from P10.5 billion in the same period last year.

AEV said in a disclosure to the stock exchange it recognized non-recurring losses of P495 million in January to June, versus a gain of P100 million last year, on from foreign exchange losses from the revaluation of dollar denominated loans.

The company, however, ended the second quarter with a consolidated income of P5.6 billion, up 3 percent from P5.4 billion in the same period last year.

Aboitiz Equity’s unit Aboitiz Power Corp. posted a net income of P9.7 billion in the first half, down 2 percent from a year ago, given non-recurring losses of P744 million, versus last year’s gain of P130 million from foreign exchange losses.

“Our core power generation and power distribution businesses have continued to post significant growth. Our new power plants are contributing significantly while our existing power plants are continuously improving in terms of availability and reliability,” said Aboitiz Power president and chief operating officer Antonio Moraza.

“We will continue, likewise, to take advantage of the economic growth in our franchise areas by providing reliable and cost-effective power coupled with the best possible service,” said Moraza.

He said Aboitiz Power’s projects in the pipeline were on track and continued to be aligned with the balanced-mix strategy.

“These projects will push us to reaching our target of 4,000 MW of net attributable capacity by 2020,” Moraza said.

Aboitiz Equity’s banking unit Union Bank of the Philippines recorded net income of P4.3 billion in the first half, or percent higher than P4 billion earned in the same period last year.

The bank’s net income growth was attributed to the sustained growth in recurring income coupled with trading profits. The bank’s resources hit P548.billion as of end June.

Aboitiz Equity’s food business contributed P717 million to the group’s income in the first half, down 19 percent from P885 million in the same period last year on higher raw material and operating costs.

The company’s real estate segment Aboitiz Land and its subsidiaries registered a net income of P202 million, up 138 percent from P85 million in the same period last year.

Republic Cement and Building Materials Inc.’s contribution to Aboitiz Equity’s income reached P494 million in January to June, a decline of 43 percent from P869 million a year ago.